Last week, the digital asset market witnessed a significant outflow of $600 million, largely driven by the US Federal Reserve's hawkish stance. This sudden exodus from Bitcoin investment products was the highest in months, signaling a bearish sentiment among investors.

The outflows were primarily driven by US spot Bitcoin ETFs, with Grayscale's GBTC ETF experiencing the largest outflow of $274.3 million. Ark Invest's ARKB and Fidelity's FBTC also saw significant outflows, while BlackRock's IBIT was the only spot Bitcoin ETF to record inflows. This sudden reversal in sentiment ended a 19-day streak of inflows into spot Bitcoin ETFs, which had brought in over $4 billion during that period.

The outflows were not limited to the US, with Canada, Switzerland, and Sweden also experiencing outflows. However, Germany bucked the trend, seeing inflows of $17 million. The total assets under management (AuM) fell from over $100 billion to $94 billion, with trading volumes dropping to $11 billion, significantly lower than the average weekly trading volume this year.

In conclusion, the hawkish Fed stance led to a significant outflow from Bitcoin investment products, reflecting a bearish sentiment among investors. The total outflows of $621 million were exclusively directed towards Bitcoin, resulting in a 7% price drop. As the market continues to evolve, it remains to be seen whether this trend will persist or reverse.